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1 – 10 of over 9000Antonia Ruiz‐Moreno, Víctor J. García‐Morales and Francisco Javier Llorens‐Montes
The goal of this paper is to examine how firms employ slack resources to enhance the relationship between organizational climate and perceptions of support for innovation to…
Abstract
Purpose
The goal of this paper is to examine how firms employ slack resources to enhance the relationship between organizational climate and perceptions of support for innovation to obtain sustainable competitive advantages.
Design/methodology/approach
The paper reviews the different contributions to the study of the relation between dimensions of the organizational climate, perceptions of support for innovation and organizational slack. Building on previous research, a series of hypotheses are formulated on the influence of the dimensions of organizational climate on perceptions of support for innovation and on how organizational slack moderates these relations. In contrast to earlier studies, the paper's work is based on managers' perceptions. A sample of 202 quality managers is then used to verify empirically the hypotheses which have been proposed. Finally, the main conclusions of the research are presented.
Findings
The results of the investigation reveal first, that the relation between the dimensions of organizational climate, perceptions of support for innovation and performance is moderated by organizational slack. Second, that a strong connection exists between the different dimensions of organizational climate. Finally, the results of the research also show that a strong connection exists between the different dimensions of organizational climate and perceptions of support for innovation.
Research limitations/implications
The conclusions of this study may be subject to several limitations that suggest further possibilities for empirical research. First, survey data based on self‐reports may be subject to social desirability bias. Second, the cross‐sectional nature of the research allows us to analyze only a specific situation in time of the organizations studied, not their overall conduct through time. Future research should place more emphasis on longitudinal studies.
Practical implications
This paper maintains that the relation between the different dimensions of organizational climate, perceptions of support for innovation and performance are determined and limited by the nature and variety of resources that the organization can bundle and apply to the maintenance and development of competitive advantages, according to the availability of organizational slack to be applied directly to organizational climate and perceptions of support for innovation.
Originality/value
The paper has provided evidence of how managers, depending on the presence or absence of slack, combine the dimensions of organizational climate differently to create the perception of support for innovation necessary to implement innovations, which in both cases means improvement in the organization's performance.
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Taghreed Abu Salim, Balan Sundarakani and Flevy Lasrado
The purpose of this paper is to study the role of slack (both moderating and mediating) to stimulate the relationship between total quality management (TQM) factors and innovation…
Abstract
Purpose
The purpose of this paper is to study the role of slack (both moderating and mediating) to stimulate the relationship between total quality management (TQM) factors and innovation outcomes relative to gaining competitive industry advantages.
Design/methodology/approach
The research methodology includes a multi-item scale questionnaire completed in three waves between 2016 and 2017, and later analysed in 2018. A final response rate of 29.5 per cent was obtained, representing 190 organisations from both manufacturing and service industries in the United Arab Emirates (UAE). Partial least squares structural equation modelling was used to test the multi-collinearity, moderation and mediation analysis.
Findings
Analysis confirmed that factors such as continuous improvement (CI), human resource management (HRM) and information measurement (IM) were positively linked to innovation. However, when slack was introduced as a moderator, innovation outcomes were stimulated through HRM and IM. The results indicate that slack acts as a full mediator for management leadership but only partially mediates supplier quality, IM, CI, HRM and process management.
Research limitations/implications
In terms of geographical coverage, research was limited to the UAE. Organisations striving for excellence through innovation may benefit from the outcomes, as they help in understanding the relationship between TQM and innovation moderated and/or mediated by slack. This could also lead businesses to develop new strategies that harmonise TQM policies with “rationale” slack policies, thus, promoting innovation.
Originality/value
This study is the first to examine the use of slack to stimulate the relationship between TQM factors and innovation outcomes. Using slack as a mediator can help in understanding when TQM might influence innovation, while slack as a moderator could invert the relationship between the two.
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Yasir Fadol, Belal Barhem and Said Elbanna
The purpose of this paper is to improve the understanding of the mediating role of the extensiveness of strategic planning on the relationship between slack resources and…
Abstract
Purpose
The purpose of this paper is to improve the understanding of the mediating role of the extensiveness of strategic planning on the relationship between slack resources and organizational performance.
Design/methodology/approach
The study uses empirical data gathered from 102 usable replies from private and also public hospitals in the United Arab Emirates (UAE).
Findings
The findings indicate the existence of a positive relationship between slack resources and organizational performance and show that the extensiveness of strategic planning plays a mediating role in this relationship.
Research limitations/implications
The authors highlight the exploratory nature of the study considering its unusual setting, namely, the UAE’s health care sector.
Practical implications
Several implications of the findings for managerial and policy practices in the UAE health care sector are discussed.
Originality/value
This study contributes to the existing literature on management, health care, and developing countries by examining the role of the extensiveness of strategic planning in mediating the relationship between slack resources and organizational performance in the health care industry of a developing country.
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Wan Li and Liang Wang
The purpose of this paper is to provide a better understanding of what drives firms’ choice between exploration alliances and exploitation alliances by examining the role of…
Abstract
Purpose
The purpose of this paper is to provide a better understanding of what drives firms’ choice between exploration alliances and exploitation alliances by examining the role of organizational slack and its interaction with market uncertainty.
Design/methodology/approach
An empirical study is conducted based on 1,614 alliances formed by 581 US biotechnology firms, and the hypotheses are tested using a zero-inflated multilevel Poisson model.
Findings
The results indicate that firms’ strategic choice to pursue exploration or exploitation alliances is a reflection of organizational intention and adaptation to environmental turbulence. More specifically, firms with more financial slack tend to form more exploration alliances and fewer exploitation alliances. However, under high market uncertainty, firms with financial slack tend to establish more exploitative partnerships and avoid exploration collaborations.
Originality/value
This paper contributes to the literature on exploration–exploitation alliances, which tends to fall short of providing an understanding of why organizations pursue such alliances. By identifying the impact of organizational slack and its interaction with market uncertainty, this study shows that organizations are able to respond to environmental change, and those with capabilities are likely to craft their strategic choice configurations based on their own characteristics.
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Daniele Giordino, Ciro Troise, Francesca Culasso and Laura Cutrì
The present article draws from the behavioral theory of the firm, and it explores whether various dimensions of organization slack can be employed as variables to measure…
Abstract
Purpose
The present article draws from the behavioral theory of the firm, and it explores whether various dimensions of organization slack can be employed as variables to measure organizations’ antifragility during times of uncertainty such as the Covid-19 pandemic. Furthermore, considering the limitations and regulations put into place during the most recent pandemic, the present study seeks to explore the moderating effect that collaborative networks might have on the relationship between various dimensions of organizational slack and firms performance.
Design/methodology/approach
The present study retrieves data from Thomson Reuters Data Stream, and it gathers observations from manufacturing companies located in Europe. The dataset is composed of observations spanning from the fiscal year 2019–2022. Consequently, through the use of a balanced panel data, the authors conduct multiple regression analysis.
Findings
The obtained empirical findings reveal that high discretion slack has a positive effect on companies performance whereas low discretion slack has a negative effect on their performance. Additionally, the obtained findings indicate that low levels of reliance on collaborative networks positively moderates the relationship between organizational slack and firms’ performance. On the other hand, high levels of reliance on collaborative networks negatively moderate the relationship between organizational slack and firms performance.
Originality/value
This manuscript carries several original contributions. It expands the literature stream concerning antifragility and collaborative networks. Additionally, it postulates an operational measure which can be used to indicate firms’ antifragility.
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Woon Leong Lin, Jo Ann Ho, Siew Imm Ng and Chin Lee
The purpose of this study is to investigate the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP), as the findings on the…
Abstract
Purpose
The purpose of this study is to investigate the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP), as the findings on the relationship have been inconsistent and have led to calls to further examine this relationship. However, instead of investigating the connection between CSR and CFP, academics have stated that a contingency viewpoint must be used for uncovering the context and conditions which catalyse the relationship between both constructs.
Design/methodology/approach
This study acquired the CSR data from 100 companies listed in Fortune’s most admired US companies between 2007 and 2016. These data were used to investigate the CSR–CFP link with the help of the dynamic panel data system, which is the generalised method of moments (GMM) estimator.
Findings
The results indicate that CSR and CFP have a neutral relationship which characterises the effect between CFP and CSR. However, this study found that financial slack positively affected the CSR–CFP relationship, implying that companies will only benefit from CSR activities if they have excess financial resources.
Originality/value
This study offers a very distinctive perspective regarding the CSR–CFP link according to the financial slack perspective.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Strategic alliances are becoming a common practice between organizations in the global economy. They are seen as being able to improve performance and help keep organizations competitive. Bizzi (2017) argues that an integral aspect of forming a strategic alliance is the level of financial slack resource an organization has. The greater the financial headroom, the more likely an organization is to engage on a potentially risky alliance. In a global market place where resources and funding are becoming increasingly scarce, organizations that can have largely unallocated resources can be seen as ideal partners. And the key resource in today’s economy for alliances is finance.
Practical Implications
The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.
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Konstantinos Bozos, Vassiliki Bamiatzi and Tamer Cavusgil
Organizational and cultural misfits have been among the most vital factors associated with Mergers and Acquisitions (M&A) failure. Admittedly, in a foreign environment, such…
Abstract
Organizational and cultural misfits have been among the most vital factors associated with Mergers and Acquisitions (M&A) failure. Admittedly, in a foreign environment, such problems can be further amplified due to the liability of foreignness, increased information asymmetries and additional transaction costs, further hampering the success of the deal. Considering that, in 2019 alone, the value of cross-border acquisitions (CBAs) exceeded $1.2 trillion (out of $3.9 trillion of the total global M&A value), deciphering the “black box” of CBA success comes at the forefront of the academic and managerial interest. In this chapter, the authors examine a missing link on the post-acquisition performance for cross-border deals, the role of organizational slack. The authors particularly theorize that slack may benefit foreign acquirers, by sheltering them against liability of foreignness and acculturation costs; yet this benefit will be conditional upon the type of slack and the acquirer’s prior CBA experience.
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Susana Gago-Rodríguez and David Naranjo-Gil
The purpose of this paper is to evaluate whether trust and distrust in upper-level managers exert different influences on the budgetary proposals of middle managers. Such…
Abstract
Purpose
The purpose of this paper is to evaluate whether trust and distrust in upper-level managers exert different influences on the budgetary proposals of middle managers. Such proposals involve different levels of managerial effort that impact overall budgetary slack.
Design/methodology/approach
This paper is based on a laboratory experiment with 160 business managers.
Findings
The results show that the more (less) middle managers trust (distrust) their upper-level managers, the more (the less) effort they commit to budgetary proposals. The authors also find that middle managers with low trust are prone to invest more effort and thus create less budgetary slack than managers with high distrust. The results also show that the introduction of suspicion does not vary this initial choice of effort and budgetary slack.
Research limitations/implications
This paper shows the importance of trust and distrust as informal control systems in organizations. The findings support the importance of extrinsic motivation for enhancing effort and reducing budgetary slack. There are a wide range of exogenous variables that have an effect on the development of trust and distrust.
Practical implications
Practitioners may improve their management control by facilitating trust and preventing distrust in interpersonal relationships because both are informal controls that can reduce and increase, respectively, dysfunctional behaviors in organizations, such as budgetary slack.
Originality/value
This paper is among the first to show the distinct effects of trust and distrust (high and low) in the efforts of middle managers. This study provides a dynamic viewpoint of trust through the introduction of suspicion in a budget negotiation.
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Despite the theoretical assumption that balancing exploration and exploitation is important for long-term performance and survival, previous studies have provided few insights…
Abstract
Despite the theoretical assumption that balancing exploration and exploitation is important for long-term performance and survival, previous studies have provided few insights into these relationships because they have focused mainly on the short-term financial performance of organizations. In addition, balancing exploration and exploitation is a critical challenge for small- and medium-sized enterprises (SMEs) that lack the resources, capabilities, and experience necessary to achieving ambidexterity. In this regards, this study empirically explores the relationship between the exploration–exploitation balance and SMEs’ longevity in order to address two important questions from the ambidexterity perspective: (1) How does the balance between exploration and exploitation influence organizational survival? (2) How is the appropriate balance between exploration and exploitation influenced by an organization’s internal and external contexts?
An analysis of 1981–2012 data from the Korean SMEs in IT industry reveals an inverted U-shaped curvilinear relationship between the extent of exploratory innovation and organizational longevity, providing support for the ambidexterity perspective. We further examine the moderating effects of financial slack and environmental dynamism on the relationship between exploratory innovation and organizational longevity. The results indicate that financial slack moderated the exploration–longevity relationship and call for a contingency approach for a better understanding of performance implications of the exploration–exploitation balance.
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